April 30th, 2008
How you can build your home equity faster
Many borrowers use a refinance plan to make the mortgage repayment term shorter. But even at low rates, a short term still means a higher monthly payment. The only benefit is that you’ll build up equity faster and pay less in total interest over the life of the homeloan. If you can’t afford the payments on a 15-year bond, your next and best way to build up equity is to refinance your loan for less than 30 years. If you wish to do so, you have to ask your mortgage company to customize your new loan’s term to match the years that are left on your old loan.